Ensuring Flawless Cash Flow for New Business Owners

The omnipresence of the Internet enables people across the globe to come up with new business incentives. Due to the harsh competition, launching and managing a small business is a challenging experience these days.

Still, having your own business is a great way to put your own ideas into practice. As this enterprise keeps growing, you’ll start hiring employees, as well, but this time you’ll be able to work with the people you choose.

In order to make all these ends meet, the supreme goal of every SMB-owner is to ensure flawless cash flow. The following lines will present some handy tactics for reaching that goal.

Attracting new customers

If you’ve just launched a new business, your revenues will depend on the quality of your products, as well as on their prices.

Logically, the more people buy your service, the higher income you can expect.

Therefore, increasing the number of customers should be one of your essential business goals.

First and foremost, you need to popularize your small business via social media, so as to make it visible to a variety of Internet users. For example, you can use Instagram for your business and generate some new leads to your services and products.

Further, creating a Facebook business page is completely free of charge. This online window shop is highly likely to improve your business visibility and attract more customers to your products. While on Facebook, take a peek at your rivals’ efforts and to get ahead of the curve and become the household name in your niche.

Also, invite the followers to leave comments and try those services on your website.

Additionally, don’t forget to create the hashtags relevant to your business and add them to every post you make in social media.

This promotional campaign across several social media will have a snowball effect pertaining to the number of customers who start buying your products. As a result, you’ll have higher revenues, which is a great base for smooth cash flow.

Closing the payment-billing gap

As new customers keep rolling in, your accounts will also see the benefit of their purchases and registrations to your website. However, it’s vital to tweak the payment schedule for your small business, so that you close the gap between the payments you need to make and the billing of your customers.

In a nutshell, you need to have the money made through your services on your account before your business payments are due.

That’s why it’s important to master the basics of invoicing for a small business before you make your first invoice. As a result, you’ll be able to adjust the invoice dates to your payment schedule, as well as to come up with creative payment solutions that will satisfy all the included parties.

For instance, you can allow your customers to make a down payment when they start using your services and then cover the rest of the monthly fee at the end of the month.

Also, giving discounts for early payments is a clever way to keep your cash flow uninterrupted.

For instance, a freelancer might want to pay in advance for their language classes. Such a person makes money in jets, so it’s important to offer them a solution to make their payment at once, while their income jet is still strong.

When you manage to collect the money before your payments are due, you’ll have a clearer picture regarding your cash flow. Hence, it will be easier to plan your next financial steps.

Introducing zero tolerance for debtors

Only in the UK small businesses suffer the damage of £2 billion a year, due to late payments.

Large business players have thousands of connections, suppliers, and options on their disposal. As a result, late payments are more tolerable when you’re a business giant.

However, an aspiring business dwarf whose plan is to reach the size of a giant can’t count on too many alternatives regarding late payments.

Because of that, it’s imperative to apply some debt-killing strategies and teach your clients to make their payments on time.

You need to take into consideration that not all of them pay you later because they like it that way. Sometimes they simply forget to make a payment. To reduce their number, send them a polite email reminder a couple of days before their payment date, informing them that their payment is due soon.

Moreover, some customers might not be satisfied with the number of payment options you offer on your business website. Your task is to make it possible for your customers to pay for your services via the most popular payment solutions. In line with that, PayPal and Stripe are a must for every new business. They’re popular with millions of people worldwide and they can be connected with various invoicing solutions and credit cards.

Speaking of which, let your customers pay you via traditional credit cards, such as Visa, Master and American Express, as well as through virtual debits cards, like Payoneer, MoneyPolo, and other alternatives.

Smarter budget planning for brighter future

Smart budget planning can also improve your cash flow when it comes to running a small business.

In line with that, you always need to put some money aside (literally) on account for gloomier business periods. That way, paying your suppliers and partners won’t be in danger in case your sales drop.

Moreover, you should save money on every single aspect of your business. Logically, the first thing that will cross your mind is saving on the workspace (especially if you’re running an online business). Keep postponing the moment you rent a tangible office space as much as possible. For instance, working from home can save a lot of money, as well as joining forces with a few colleagues of yours and share one workspace.

Apart from that, you can make your business budget more efficient by outsourcing some services, instead of hiring full-time workers. For instance, giving your accounting tasks to a reliable online accountant will give you more time to concentrate on improving your services. What’s more, you’ll have your books sorted out in a professional way.

Finally, don’t ever stop offering new services and products to your customers. Those innovations will show them that you care about their user experience and want to strengthen your business collaboration. As a result, they’ll be inspired to stay loyal to your business and keep paying for your services. Naturally, when you constantly have new streams of income, it’s much easier to maintain the cash flow.

Conclusion

Starting a small business is a smart thing to do these days because you can collaborate with other businesses and customers from across the globe. As a result, you’ll get an opportunity to make multiple streams of income for your services.

However, this business move requires some deep thinking when it comes to finances. The key element that will ensure sustainable growth is maintaining smooth cash flow. If you follow in the footsteps presented in this text, you’re highly likely to run your new business in a profitable way.

Mark Thomasson
Mark is a biz-dev hero at Invoicebus - a simple invoicing service that gets your invoices paid faster. He passionately blogs on topics that help small biz owners succeed in their business. He is also a lifelong learner who practices mindfulness and enjoys long walks in nature more than anything else.
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